News Of Aol Inquiry Hits Share Price

July 26, 2002

AOL Time Warner Inc. shares tumbled 15 percent after the world's biggest Internet and media company said U.S. regulators are investigating the way it accounted for some advertising sales at America Online.

The stock dropped $1.76 to $9.64, a four-year low. The company said the Securities and Exchange Commission asked for information after The Washington Post reported last week that America Online boosted revenue with methods such as collecting legal settlements through ad sales and trading ads for computer equipment.

The Florida Association of Realtors said single-family unit sales in June of this year were 1,354 in Fort Lauderdale and 1,124 in Miami, both down slightly from last year. No figures were available for Palm Beach County.

The National Association of Realtors reported that sales of existing homes nationwide plunged by 11.7 percent in June from the month before.

Trust seeks to sell Hershey control

Hershey Foods Corp. shares rose 25 percent, the biggest gain in at least two decades, after the charitable trust that controls the largest U.S. chocolate-candy maker put the company up for sale.

The maker of Reese's Peanut Butter Cups may fetch at least $10 billion, based on Thursday's surge in the shares. The Milton Hershey School Trust wants to diversify its one-third stake in the company because it accounts for about 52 percent of its assets, said trust spokesman Rich Kelly. Shares rose $15.80 to $78.30.

New Coconut Grove Ritz is hiring

On Monday, The Ritz-Carlton, Coconut Grove will begin screening job applicants to fill 200 positions at the new 115-room hotel, which opens Sept. 20 in Miami.

FOR THE RECORD - CORRECTION PUBLISHED TUESDAY, JULY 30, 2002An article published July 26 on Page 1D should have included the reason for essentially flat sales for existing homes in the state and slightly down sales in Broward and Miami-Dade counties in June. The Florida Association of Realtors said it was probably due to higher prices and limited inventories of homes in many markets.

Screenings will run through Aug. 14, Monday through Wednesday from 10 a.m. to 8 p.m., at the hotel's pre-opening office at 2675 South Bayshore Drive.

Applicants must apply in person. No appointment is necessary. For more information, call 305-644-4680.

Sunair revenue news is positive

Sunair Electronics Inc., a Fort Lauderdale producer of high-frequency radios and communications systems, reported net income of $892,055 for the three-month period ending June 30, compared to a $46,931 loss for the same quarter last year. This is the third consecutive quarter the company has reported a net profit.

Sunair, which has about 60 employees, said its revenues for the period, the third quarter of fiscal year 2002, grew to over $1.7 million, against $1.3 million a year earlier.

Durable goods orders decline 3.8%

Orders to U.S. factories for big-ticket goods, including cars and computers, fell in June by the largest amount in seven months, raising fears that the stock market malaise may be causing Americans to rein in their spending, which would slow the recovery.

Economists were rattled by a Commerce Department report Thursday showing orders for costly manufactured durable goods dropped by 3.8 percent in June from the previous month. Many economists were predicting an increase in bookings. The weakness was widespread.

Xerox's back in the profit column

Xerox Corp. had quarterly net income of $93 million, its first in more than a year, because of cost cuts and the company said it will be profitable for the year.

Second-quarter net income at the world's largest copier maker was 12 cents a share, compared with a net loss of $101 million, or 14 cents, a year earlier, Xerox said. Full-year profit will be 9 cents to 12 cents. Analysts had been expecting losses.

Shares rose 85 cents, or 16 percent, to $6.20.

SEC reviewing banks in Enron case

The Securities and Exchange Commission is investigating whether Citigroup Inc. and J.P. Morgan Chase & Co. helped Enron Corp. hide debt, according to a person familiar with the probe.

The SEC, which regulates U.S. securities markets, is pursuing evidence that shows the two largest U.S. banks had a clear understanding of Enron's intention to mislead investors and played a necessary role in the alleged fraud, the person said.

Bausch & Lomb earnings are up

Bausch & Lomb Inc. said second-quarter profit more than doubled on higher sales of contact lenses and lens-care solutions. The company also announced plans to close plants and cut 450 jobs.

Net income rose to $21.8 million, or 40 cents a share, from $6.8 million, or 13 cents, a year earlier, the company said. Sales rose 14 percent to $458.7 million from $401.7 million.

Bausch & Lomb has closed one manufacturing plant and cut another 800 jobs this year. Thursday's plan, which includes shutting plants in Spain, Korea and Miami, will increase operating profit by about $90 million in 2005, Bausch & Lomb said.